Investors have already removed $83 billion from emerging markets since the coronavirus crisis began, the International Monetary Fund (IMF) said in a report on Monday.
The IMF further noted that it’s particularly concerned about low-income countries in debt distress and added that it’s working closely with the World Bank to step up emergency finance.
Nevertheless, the market reaction to these remarks was largely muted.
“Ready to deploy all of the $1 trillion lending capacity.”
“Several low- and middle-income countries have asked the IMF to make allocations similar to those used during the 2008 financial crisis.”
“Member countries need to provide additional central bank swap lines to avoid a liquidity crunch.”
“Exploring a proposal that would expand the network of swap lines, including through IMF swap facility.”